Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Friendliness
• Safety
• Employee Wellbeing
• Responsible Procurement
• Corporate Governance

Environmental Achievements

• Used water-based paints and eliminated emissions of hazardous substances in production.
• Located end-product assembly and spray painting facilities within Europe to reduce transportation emissions.

Social Achievements

• Increased workforce to 1,213 employees (2002: 1,061), including pro rata the Tunturi workforce.
• Employed 180 temporary employees to adjust to seasonal production output.
• Dedicated substantial time in production facilities to internal training and flexible application of the workforce.

Governance Achievements

• Discussed and largely complied with the recommendations of the “Corporate Governance Code of the Netherlands”.

Climate Goals & Targets

Environmental Challenges

• Low average levels of consumer confidence and limited economic growth.
• Price pressure in many sectors.
• Bad weather in the spring and/or extremely hot or bad weather in the summer negatively affecting bicycle sales.
• Dependence on component availability from third-party suppliers, some with dominant positions.
• Potential for supply chain disruptions due to component delivery times of up to 6 months or more.
• Exchange rate and interest rate risks related to purchasing components in foreign currencies.

Supply Chain Management

Responsible Procurement

• Sourcing components from third parties where it yields benefits and cost savings.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Labour conditions
• Environment-friendly production
• Employee well-being
• Social projects

Environmental Achievements

• Use of 100% water-based paints in paint shops, eliminating harmful emissions.
• Recycling of packaging materials.
• Projects for improvements in reducing energy and water consumption.

Social Achievements

• Active support for initiatives promoting physical activity (sponsoring sports clubs).
• Offering opportunities for people who find it difficult to find work.
• Support for social projects like Bike 4 Care and Bike 4 All.

Governance Achievements

• Established an audit committee and a selection/remuneration committee.
• Revised its regulations and profile outline for the Supervisory Board.
• Implemented a whistleblower scheme to protect employees reporting irregularities.

Climate Goals & Targets

Environmental Challenges

• Difficult year for bicycle sales due to weather conditions (long winter, wet months).
• General economic conditions and price increases affected sales.
• Changes in the tax relief scheme for company bicycles in the Netherlands.

Mitigation Strategies

• Seasonal production and sales plans to adapt to weather and demand.
• Increased flexibility in response to supply and demand.
• Focus on high-grade electric bikes and sports bikes which showed positive sales growth.

Supply Chain Management

Responsible Procurement

• Code of conduct for suppliers covering child labour, forced labour, discrimination, safety, environmental standards, and working conditions.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Electric bicycles
• Bicycles with improved safety features

Environmental Metrics

ESG Focus Areas

• Sustainability
• Health and Safety
• Employee Well-being
• Supply Chain Responsibility

Environmental Achievements

• Conducted Life Cycle Analysis (LCA) of bicycles, showing environmental impact equivalent to around 500 km of car use.
• Calculated CO2 footprint of Batavus (around 2,500 tonnes) and Sparta (around 1,000 tonnes).

Social Achievements

• Launched Accell Corporate Sustainability Initiative (ACSI) with CSR leaders in each company.
• Intensified stakeholder dialogue, including employees, dealers, shareholders, and government.
• Worked with WFSGI to improve supply chain sustainability.

Governance Achievements

• Continued to improve corporate governance in line with Dutch Corporate Governance Code.
• Appointed an Internal Auditor.

Climate Goals & Targets

Environmental Challenges

• Reduced consumer spending and postponed purchases of durable goods.
• Unfavorable weather conditions affecting bicycle sales.
• Hesitant retailers reducing stock levels due to limited financing options.
• Weak market for fitness equipment for home use.
• Exchange rate fluctuations and interest rate changes.
• Risks associated with acquisitions.

Mitigation Strategies

• Price increases, reduced discounts, and higher sales improved turnover in the second half of the year.
• Seasonal production and sales plans to adapt to demand fluctuations.
• Focus on core clients, product development, and brand strengthening in the fitness division.
• Currency hedging and interest rate swaps to minimize financial risks.
• Thorough assessment of acquisitions with involvement of the Board and Supervisory Board.
• Harmonized financing structure and full refinancing of the company.

Supply Chain Management

Responsible Procurement

• Code of conduct for suppliers addressing child labor, forced labor, discrimination, safety, environmental, and labor conditions.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Level C), ISO 26000

Third-party Assurance: Deloitte Accountants B.V.

Sustainable Products & Innovation

• Electric bicycles (e-bikes), intelligent suspension system (e:i shock), ION 2.0 drive system, AUM motor controller.

Awards & Recognition

• KOGA WorldTraveller: Bike of the Year 2012 and Reddot design award
• Koga SuperMetro: iF Product Design GOLD Award and Reddot design award
• Koga E-Tour: iF Product Design Award
• Currie Eflow E3 Nitro: iF Product Design GOLD Award
• e:i shock: Eurobike Award and R’bike award
• Batavus RemovE: Dutch Bike Innovation Award
• Haibike eQ XDURO RX: iF Product Design Award
• Haibike Greed 29: iF Product Design Award
• Haibike Sleek RC29: Eurobike Award
• Sparta: three-time winner of GIO Award for ION RX+, Amazone4life, and Radar
• Winora Town:exp: Taipei Cycle Show d&I Award
• Winora XP3: iF Product Design Award
• Ghost Cagua Lector: Universal Design Award
• Ghost HTX Lector 29: Taipei Cycle Show d&I Award